San Bernardino to consider warehouse moratorium

The San Bernardino City Council has requested a citywide warehouse moratorium be placed on a future council agenda for consideration in the next 30 days.

The request was presented by new 5^th Ward Councilmember Ben Reynoso.  “This is not anti-business, it’s about diversification,” said Reynoso.  “They have been popping up like daisies.”

According to Councilmember Reynoso, San Bernardino now has over 70 warehouses within its 68 square miles of territory.  No comparisons were provided from surrounding cities or regions.

Councilmembers Theodore Sanchez (1^st Ward) and Fred Shorett (4^th Ward) both raised concerns regarding the request.

Sanchez criticized the “haphazard” concept and stated that any consideration should be part of the City’s General Plan update in coordination with possible mitigation measures as part of a comprehensive assessment.  Shorett added that he did not support the proposal and was concerned that developers would just “go around the city and go elsewhere” nearby.

Over the past two decades, San Bernardino has successfully attracted warehouse operations along the I-10 and I-15 Freeway corridors, and areas adjacent to the San Bernardino International Airport.  Stater Bros, Pepsico, Pep Boys, FedEx, and Amazon have all located distribution facilities in San Bernardino.  Colton, Rialto, Redlands and unincorporated county areas have also seen an increase in warehouse and logistics businesses located nearby.

The location of distribution businesses is not a surprising happenstance.  San Bernardino has long depended on railroads, highways and air travel for its livelihood which evolved from the Mormons arriving through Cajon Pass, to the establishment of Santa Fe Railroad, then the development of Norton Airforce Base and the ultimate arrival of the I-10 Freeway corridor.

“Distribution businesses have gone a long way towards rejuvenating San Bernardino’s economy,” stated Economist Jay Prag, from the Drucker School of Management at the Claremont Colleges.  “The city can be more selective.  But a moratorium is telling logistics businesses San Bernardino is no longer interested.  That is a terrible message to business, from any city.”

The request by Councilmember Reynoso was approved by the full council on a 5-2 vote with Councilmembers Sanchez and Shorett dissenting.  The action requires city staff to bring a measure back to the council for discussion.